Baidu's Shares Matching Up Against Top Industry Contenders?
Baidu, the Chinese tech giant primarily known as a search engine provider, is making waves in the artificial intelligence (AI) sector. The company's recent unveiling of Ernie X1.1, a reasoning model promising significant improvements in accuracy, command following, and autonomous capabilities, has caught the attention of investors worldwide.
At the Wave Summit 2025, Baidu showcased Ernie X1.1, a model that outperforms DeepSeek R1-0528 in benchmarks and is on par with OpenAI's GPT-5 and Google's Gemini 2.5 Pro in performance. This development has led investors to view Baidu as a serious global AI competitor, moving beyond its traditional search engine reputation.
Baidu's CEO, Robin Li (Li Yanhong), who has been at the helm since 2021, is spearheading this AI-focused transformation. The surge in Baidu's stock is a testament to investors' appreciation of the company's latest advancements in AI. On Tuesday, Baidu stock surged by 7.81% in the US and climbed up to 12% in Hong Kong.
The deployment of Ernie X1.1 via the Qianfan cloud platform is a strategic move that strengthens Baidu's position in the rapidly growing 'Models-as-a-Service' market. This move also expands Baidu's AI services reach, making advanced AI technology more accessible to a wider audience.
Baidu's technological advancements in AI are complemented by the PaddlePaddle framework, an open-source platform used by over 23 million developers and 760,000 companies. The framework's wide application, combined with Baidu's AI models, is fueling massive growth expectations on the stock market.
In fact, Baidu generates approximately 45% of its new code using AI, a testament to the company's reliance on AI for innovation. The company's in-house tool, Comate 3.5S, allows developers to work as efficiently as an entire team, further accelerating the pace of development.
Ernie X1.1 is now available to users via the Ernie Bot website and the Wenxiaoyan app, making it easier for individuals and companies to leverage Baidu's AI technology. As Baidu continues to push the boundaries of AI, it is poised to solidify its position as a global AI leader.
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